The takeaway
The unemployment rate includes only those who are actively seeking a job, and seeking a job involves different incentives for married couples versus single heads of household.
Unemployment by marriage status
Our FRED graph above shows the unemployment rate for married men (blue solid line) and married women (green dashed line) as well as women heads of household (dotted orange line). There are a few stories revealed in this graph:
- The series for married women and the series for married men move in sync across business cycles.
- In the early years, these two series were separated by about 2 percentage points until they converged in the 1990s.
- The unemployment rate is considerably higher for women who maintain families—in single-parent households or in households where they’re the main breadwinner.
To be clear: The unemployment rate is not the fraction of those not working in the general population. The unemployment rate is the fraction of persons in the total labor force who are not working but are actively available and looking for a job. The labor force is made up of these persons plus those who are actively working.
The employment dynamics of marriage
Someone who’s married may be more likely to choose not to work than a single person. Also, women, in particular married women, have progressively increased their participation in the labor force over time. Thus, both sides of the unemployment rate may be affected in complex ways by the dynamics of marriage.
If one spouse in a married couple has a job, the incentives for the other spouse to work can be lower than a single person’s incentives. So, they may voluntarily choose not to work and remove themselves completely from the labor force. A smaller labor force raises the unemployment rate. If the non-working spouse is opportunistic about finding a job, they may be included in the labor force only when they have a job. This would lower the unemployment rate.
Women who maintain families
The situation is quite different for women who maintain families: They may need a job much more than married women. Hence, they may look much more intensely and frequently for a job and are less likely to be opportunistic about it and abandon their job search. So, their unemployment rate is markedly higher.
How this graph was created: Search FRED for release table A-10 from the Current Population Survey. Select the three series shown and click “Add to Graph.”
Suggested by Christian Zimmermann.